PDC Energy (PDCE) Update - Dec 9

[dan_s]

This is really good news for PDCE

DENVER, Dec. 08, 2022 (GLOBE NEWSWIRE) -- PDC Energy, Inc. (“PDC” or the “Company”) (Nasdaq: PDCE) announced today that the Colorado Oil and Gas Conservation Commission (“COGCC”) unanimously approved, with overwhelming support of PDC’s efforts, the Company’s Guanella Comprehensive Area Plan (CAP), which encompasses approximately 33,000 consolidated net acres, 22 locations and approximately 450 wells in Weld County, Colorado.

The Guanella CAP further supports the Company’s long-term planning and permitting efforts. With today’s CAP approved locations and our previously established multi-year inventory of projects in the DJ Basin, the Company has clear line of sight into its turn in line activity well into 2028 at current activity levels. The Company expects to continue an active Oil & Gas Development Plan (“OGDP”) permitting program to maintain a multi-year inventory of projects and provide operational flexibility to most responsibly develop our 230,000 net acres in the Basin.

President and Chief Executive Officer, Bart Brookman, commented, “I would like to commend our team members at PDC who have worked diligently and collaboratively with communities and regulators on this CAP application. Today’s unanimous approval is a testament to their work and established working relationship with leadership and staff at the COGCC and we look forward to continuing to build on a constructive permitting record. With approximately 2,000 highly economic remaining locations identified in our DJ Basin inventory, today’s approval materially derisks our inventory as we now have more than half of these locations already drilled and awaiting completion, permitted or actively in the permitting process. I am also proud of the alignment from our CAP development plans and our continued thoughtful and incremental progress on our ESG goals. With our commitment to electrification and the most protective suite of best management practices across the CAP development, we are well positioned to produce some of the cleanest hydrocarbon molecules in the world from the DJ Basin.”
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Note from Neal Dingmann at Truist Financial today:
"After a two day hearing, PDCE's (Buy) Guanella CAP was approved by the COGCC​ granting the company 450 wells on 22 pads on a 50+ square mile development. Most importantly, these wells represent the company’s activity levels through ’28, removing what we consider to be a significant level of overhang from the shares, as regulatory headlines should now have little impact on PDCE’s operations in the near term. We view this approval as a positive data point for the entire basin and not just PDCE, as the size of the CAP approved indicates a more friendly regulatory environment than prior smaller successes have granted."

[dan_s]

TipRanks:
"On 12-9-2022 Siebert Williams Shank & Co analyst Gabriele Sorbara maintained a Buy rating on PDC Energy (PDCE) today and set a price target of $103.00. The company’s shares closed yesterday at $64.13.

According to TipRanks, Sorbara is a 5-star analyst with an average return of 15.3% and a 47.97% success rate. Sorbara covers the Utilities sector, focusing on stocks such as Diamondback, Denbury, and SM Energy.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for PDC Energy with a $91.25 average price target, representing a 42.29% upside. In a report released on December 5, J.P. Morgan also maintained a Buy rating on the stock with a $88.00 price target."
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My current valuation for PDCE is $124 per share.